By Charles Lichfield. As the Russian ruble began its recovery in March from a sanctions-induced collapse following the Kremlin’s invasion of Ukraine, Western governments began arguing that the exchange rate shouldn’t be used as an indicator of the effectiveness of their sanctions. The Russian financial system may have withstood the initial shock—but a fall in gross domestic product (GDP) and crippling input shortages, they claimed, would force Moscow to eventually de-escalate as the war entered a grinding phase. But it’s time to reassess this stance.
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